Golf Properties remain popular in this slow market

The recession has definitely taken its toll on the housing market and golf course properties are no exception. A few articles ago I had spoken about the popularity of golf course living and the fact that homes on a course will appreciate faster and hold their value longer than similar non-course homes. According to the Golf Research Group, which tracks the industry, golf properties are three times as valuable as the average U.S. home. Golf course living definitely has its advantages. The article from 2007 stated “In a recent study by the Longitudes Group, Golf course homes seem to hold their value more than other real estate, even in the same zip code. "Lot values on golf courses have a 40 percent premium over other lots in the neighborhood," said Sara Killeen of the Longitudes Group. "Even when a market is really getting hammered, people will find a golf course home more appealing than a non-golf home. A golf home is going to out-perform a non-golf home almost every time.”
  The popularity of living on a golf course has not diminished, however the overall real estate market has softened and the golf course housing has followed accordingly- Colorado home sales have dropped 24.2% since August 2007 and active listings have fallen 34.2% in that same time. That is not necessarily a bad thing, it just means that we are finally getting rid of surplus inventory of homes and will soon be in an even market where we are no longer in a buyer’s market and we will not be in a seller’s market either. The current market is like other down markets, and as I tell my clients, there are 3 homes in any neighborhood that will always sell, the nicest, the best location and the least expensive. Many times the nicest is also in the best location, i.e. a golf course home. So if you are thinking of selling or have a home currently on the market, you need to know if your home falls into one of these three categories, if not, plan being on the market until your home becomes one of these three.
Taking a closer look at some of the newer golf communities- Flying Horse in the northern Colorado Springs area is one of the largest new developments in the state over the past few years, in 2007, 428 homes sold with an average sale price of $410,000, in 2008 those numbers dropped to 341 and $382,000 respectively and are on track for 240 sales with an average price of $356,000 for 2009. Looking at a couple other markets nearer to Denver, Castle Pines, which has four courses, The Sanctuary, Castle Pines Golf Course, Country Club at Castle Pines and The Ridge at Castle Pines, has seen similar drops in sales and prices from 809 sales with an average price of $598,000 in 2007 to 555 sales with an average price of $551,000 down to a projected 324 sales for 2009 with an average price around $500K. Parker, Colorado is home to 4 courses as well including, which includes the recently renamed Black Bear Golf Club, The Pinery, Pradera Country Club and Colorado Golf Club which recently was awarded the 2010 Senior PGA Championship as well as the 2013 Solheim Cup. Parker has held it’s own with the average sales price of $380K in both 2007 and 2008 and just a slight drop to $371K for 2009 so far. Sales in Parker have been a very different story however, with 816 sales in 2007, followed by 569 homes in 2008 and on track for just 298 sales for 2009.
 Sales appear to have slowed accordingly in the secondary home market in the mountains as well. Several markets are seeing slower than projected sales including, The Brightwater Club in Gypsum, Adams Rib Ranch in the Vail Valley and Cornerstone Golf Club near Montrose. Although sales have slowed at all three courses they remain very optimistic about their futures and expect to see continued sales and with good reason, the amenities offered at each of these fine courses are world class and sure to please the outdoor enthusiast.
The current market is seeing the best selling price point to be between $250-300K and the worst selling range is currently over $1M, this in and of itself would help to explain the slowdown in the golf course home sales which typically see lot sales in the lower selling range and many golf course homes listed over $1M. 
All that being said, expect to see the golf housing market to remain a very popular housing option, where else can you have a beautifully manicured park like setting out your back door that someone else maintains, offering a variety of entertainment and an unobstructed view of the course and beyond. A very interesting fact about golf course living is that 40% of the owners that back to a course do not even play golf. If you happen to be in the market for a golf course home, now may be the best time ever to make that move, with new construction builders offering incredible discounts and incentives to sell off excess inventory and some unfortunate sellers that are forced to move due to layoffs or job transfers, there are some very good deals to be had.  As I like to remind my clients, try to find your price range and then search in neighborhoods where that range is at the lower end of the spectrum as opposed to the higher end, in a market such as we are currently experiencing the only time you should pay top dollar for a house is if it is everything you are looking for in a home, otherwise shop around a little for a bargain.